"Hey look, mister. We serve hard drinks in here for men who want to get drunk fast, and we don't need any characters around to give the joint "atmosphere".
                                                                                                               - Nick

 For many people watching "It's A Wonderful Life" is an annual Christmas tradition. Poor George Bailey hits rock bottom - yet the folks of Bedford Falls come in at the eleventh hour to help him keep the Building and Loan afloat. Who doesn't shed a tear when Zuzu proclaims "Every time a bell rings, an angel gets his wings."  Come on, admit it. 

It's funny how stories can have that effect on you. How even when you know what's going to happen there is something so cathartic, so soothing, about experiencing both the trouble and the resolution from the safe distance of an observer. It's like practice for real-life feelings. Confusion about what to do with one's life, ambivalence about the roads not taken, money troubles, relationship problems -  whatever. We can all relate.

I don't think we are alone, but this movie transcends Christmas and enters your subconscious to the point where you can quote it year- round. I know just mentioning Zuzu's pedals to Laura will bring a smile to her face, with a hidden inside meaning.   

So what does this all mean? The end of the year is always a time for reflection and IAWL is a catalyst to think about all the good that happens during times of difficulty. Real estate, like many other industries, has endured what seems to be years of "challenge" and in many ways the end of 2011 is welcome.

Each month we review countless reports, charts and pages of data looking for clues about the future of the real estate market that we can share with colleagues, friends and clients. Next month we will be reporting all of our year end sales statistics, with comparisons to 2010 and previous years. The interesting thing is that for most parts of Maine, particularly the greater Portland area, sales results for 2011 will be encouraging and expectations for 2012 promising.  

Encouraging in this case means that the downward slide in prices appears to have been halted. In fact many communities in Cumberland County will report modest increases in median selling prices of single family homes. Bear in mind, however, prices now are at a point that is comparable to levels of 2004, reflecting a net decrease of some 10% to 15%. That is significant - and each community in Maine is very different, especially along the ocean or inland along a lake.  

Although we still have a few weeks left in December, unit sales will end up slightly below 2010 results. Again some communities will report growth, but this is not universally true. The takeaway is that we have reached a point of apparent stability.

Going forward stable prices and improving market conditions should be good for both buyers and sellers. Although we still have a high level of inventory yet to absorb in some price categories, sellers who have been sidelined waiting for price stability and signs of demand improving should be more confident in listing their home for sale with respect to pricing and timing in 2012. Similarly, buyers who have been focused on buying at the market's lowest level might find themselves missing opportunities.

Despite what was recently reported by Forbes Magazine about the business climate in Maine, those of us who live here know how great it can  be.  Based on the number of people who visit our website and are considering  a move, we know that Maine is still a desirable place for people to live, work and call home.

We home you enjoy this edition of Inside the 2007 and want to thank your for your continued support, referrals and friendship.

Happy Holidays! 

Beginning in 2007, Homes Sales Worse than Reported       

If you are thinking of buying or selling - or know of someone who is, it would be our privilage to assist them.